Located just east of Bali, Lombok is another tropical paradise that is great not only to be a vacation destination, but also to start a property investment. Due to its popularity among tourists who are looking for beautiful beaches and hikers who seek an adventurous experience in Rinjani Mountain, the third highest mountain in Indonesia that is famous for the scenic sight of its Segara Anak Lake, any hotel and villa that you own in Lombok will mostly turn into a profitmaking investment. Investing in tourism property in Lombok is an advantageous decision and the explanation below will show all factors that make up the advantages of the investment.
If you buy a villa for rent Lombok, the money you spend to buy your villa will be repaid in less than 15 years of rentals. If the villa is located at a very strategic location, you can even expect your breakeven point to be reached in 7 years.
The returns of your investment will be awesome. Although you can hardly expect returns of 20% or higher (never believe an agent who promises returns of such percentage), you can still enjoy sweet returns of 15%. Your returns will never go below 10% if you manage your investment properly.
Foreigners will find it easy to own a real estate property in Lombok. A reputable nominee or PMA (Penanaman Modal Asing) company that can represent them is easy to deal with. Through such channel, the property that they buy will always be legally theirs.
Foreigners who don’t want to form a partnership but wish to hold a full control of a property in Lombok can use leasehold channel. This channel allows them to enjoy full control of a villa or a hotel for a certain length of time (usually 25 years) and gain profit from it. They have to pass their control to the lessor, though, when the leasehold term ends. Therefore, property ownership through either nominee or PMA channel is often a preferred option for foreigners who wish to own the property permanently.
Property in Lombok is fairly cheap to build. If you wish to buy a piece of land and to build your property there, you only need to pay about $200 to $1,000 to construct a square meter of building. The construction cost that you have to pay depends on the quality of the structure you are building.
The facilities you can get if you buy a villa for rent Lombok is considered complete. By spending around $200 to $1.000 you can get a villa with several facilities which can support your investment. Those are including bedrooms, self-catering, private chef, and swimming pool. Most of the villas are built in strategic location.
Hopefully, after learning about the advantages of villa for rent Lombok investment, you can start considering about taking investment. It will be a good prospect for you to get long term income. Don’t forget to consult about the agent first to make sure that you get the best villa for investment.